8 Causes of financial failure

Struggling financially? A lot of people are, even though they give everyone the impression that they have it all made. They are working, live in a nice house and drive a nice car, but are living from payday to payday. Here are 8 major causes why people are struggling today.

Living beyond your means 

There is no getting away from it. If you spend more money than you earn then you must be getting your extra money from somewhere and that almost always means borrowed money, also called buying on credit. There is a cost to all of this and it is called interest. If you are in the habit of buying stuff on credit then the interest you are paying during your lifetime will add up to a fortune. The interest is sometimes called dead money because you have nothing to show for all of the interest you are paying. Think of what you could have spent with all of that interest. It is almost too painful to even think about but if you are to avoid poverty then you need to pull your head out of the sand and face the facts; your financial future depends on it. 

Keeping up with the Jones's 

Some people try to keep up with their peers with whatever they are spending their money on. It's a compulsion that will cost you plenty. Living up to some kind of self image will severely dent your finances and will prove costly by the time you stop working. You may think your peers are doing well financially to afford this stuff or even think they have done well for themselves but what you don't know may surprise you. That they may be up to their eyeballs in debt. Even if they are living within their means to finance their lifestyle, it does not mean you have to keep up with them. Don't be a people pleaser and live up to other people's expectations, live according to what is the right course of action for your own circumstances and you will be far happier. 

Consumer Debt 

Consumer debt or dumb debt as it is often called is purchasing stuff with borrowed money. It is spending tomorrow's income today. Debtors are usually oblivious to what is happening to the so-called stuff they bought on credit; that their newly acquired possessions are worth less the minute they have bought it. A crucial factor which needs to be observed is this; The money owing on the item is always more than what the item is worth. So many people are caught up in the debt poverty cycle and it is not just those on lower-incomes; in fact people on a middle -income are prone to this trap.

Commercial Greed 

Commercialism during the 20th century has brought a lot of prosperity; it has provided jobs and created countless businesses but there is another side to it. Social media and society has caused us to have an insatiable appetite for things. People are not content with just stuff they need but keep wanting more. This all has to be paid for, it is money that could have been used to build a financial base for their future. 

Addictions 

Addictions are very expensive; just ask any smokers. One does not need to be a mathmatician to calculate how much cigarettte smokers are paying for their addictions. It is estimated at over $A100 per week. That equates to $5200 per annum. No wonder many smokers are broke. It is the same with those who are addicted to alcohol and the pokies. 

Financial illiteracy 

Financial illiteracy is the major cause of financial poverty and it is not only those with low incomes who are financially illiterate; people on a high income can also be guilty of this. You hear stories of successful sports people who earned millions during their heyday but are broke years after their retirement. It is important to save and invest your money during your best earning years to set you up for when you are no longer earning as much. 

Irresponsibility 

Not taking responsibility for your own finances is irresponsibility. They will come up with all kinds of excuses why they or are not contributing to savings, and investment opportunities. Excuses such as, "You can't take it all with you," "I might die before retirement," or "I'm only young." People who are irresponsible with their finances tend to be irresponsible in other areas of their lives as well. Making commitments whether it is in a relationship, owning a house or car, or saving for your retirement takes responsibility

Bad Company 

There is no doubt that bad company is a major reason why so many people are living in poverty. It has been said, "You are the average of the five people you spend most of your time with," so it pays to examine who you are hanging out with and ask whether their attitudes and opinions on finance are influencing your money habits. In order to grow you need people to help and encourage you. This sometimes means separating from bad company. Some find that hard but in the long run it is all worth it.

Article Source: https://EzineArticles.com/expert/Robert_Alan_Stewart/2287449

7 Reasons Stock Exchanges Have Performed, So Well, Recently!

 In the past, few years, we have witnessed, a performance, by Stock Exchanges, which, exceeded, many of those, in previous periods! Although, former President Donald J. Trump, wanted to take credit for this phenomenon, in reality, it was probably, due to, a variety of factors, to a significant degree! In reality, there are, at least, 7 reasons, for this performance. With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 7 possible, reasons/ causes, for this, and what, it may mean, and represent. 

1. 2017 Tax Reform Legislation: 

Although, politically, promoted, as great news, and helpful, to the middle - class, the greatest beneficiaries, of the 2017 tax legislation, has been, the largest corporations, and wealthiest Americans! In fact, many believe, it was, actually, Welfare, for the Wealthiest! 

One impact was, corporations, made far- more money, not predominantly, because, they expanded, their sales results, but, rather, lowered their costs/ expenses, by paying less taxes. Supporters of this, claim, when large corporations, make more, it helps others, but, the promised, employment boosts, didn't seem to occur, in any significant way! Since, corporations made greater profits, their stocks, appeared, more appealing, and thus, many investors, sought to get involved! In addition, the richest, potential, investors, ended - up, with a lot more, disposable - income! 

2. Artificially - low, interest rates: 

These past, few years, interest rates, have been, at, or near, historically, low rates! While, it made loans, more affordable, it also, made the cost, of Margin, cheaper, also! In addition, it translated - to, investors, having fewer options, because, the return, on fixed - income, investments, such as Bonds, and bank interest, lost popularity, because of the low return! 

3. Cheap Money: 

Low rates meant Cheap Money, and many took advantage, by investing. Corporations also, discovered, they could borrow, at low rates, and, make themselves, appear, far more attractive, to potential investors! 

4. Manipulation/ Day Trading: 

Larger investors appeared to try to take advantage, by using steps, manipulating, prices - upward, to their advantage! Because of the ease, created, because of the Internet, we have also witnessed, far - more, Day Trading, which, also, tends, to raise the overall, Stock Markets! 

5. The Internet: 

The expansion of Discount Brokerage Houses, and reduced minimums, commissions, etc, combined, with, the ease, of investing, created by the enhancements, from the Internet, has benefit stocks, etc! 

6. Wishful thinking: 

How much of the increase, is based, on fundamentals, and quality, and, how much, on wishful thinking, hopeful reasoning, speculation, and so - called, tips? 

7. Strong fundamentals/ optimism: 

Some of the optimism is warranted, especially, when it comes to certain stocks, with quality fundamentals! 

There are many reasons, the price of stocks, have risen! Some are deserved, some are speculative. A wise investor proceeds, with, thorough consideration, and awareness! Know, before you invest! Weigh your approaches, based on your personal comfort levels, and, on a, risk/ reward basis!

Images:Courtesy of Fool.com

Article Source: https://EzineArticles.com/expert/Richard_Brody/492539

Why Personal Finance Software Is Important

Why personal finance software is important 

These days, technology has really revolutionised people's way of life, including their financial life. Back in the day, most people used a pen and paper to document their earnings, spending, and finances. 

What is personal finance software? 

Home finance software refers to a financial tool that enables you to prepare a budget, track your expenses, and check your overall finances. These days, there is no valid reason why you should be disorganised and mired in debt because there are many good personal finance programs that you can use to keep track of your money, plan your future, and completely control your finances. If you have a PC, mobile or laptop, you are lucky because you can easily find good home finance software at little cost or free. Application programmers have now catered for the high demand for these applications as they now come with all sorts of functions and capabilities that can save your money, time and effort. 

Analysis 

You can now analyse your finances unaided. Finance software will analyse your important financial details. Details such as your monthly expenses will stick out. Many personal finance applications also allow personalisation. If there is one particular aspect you want to know about your finances, you can simply create a specialised analysis. Many personal finance programs can also give you a monthly analysis-an excellent way to see how you actually spend your money over this timeframe. 

Budget creation 

We all know the importance of a personal budget. But creating a real budget that you'll stick to is easier said than done. You can find a personal finance application that creates a realistic budget for you. Simply enter your basic information into the software and quickly create a simple budget. 

Checkbook balances and bill payments 

Sometimes you'll fail to pay bills on time. When it happens, interest rates are more than likely to shoot up. Fortunately, you can avoid this mistake once and for all. Look for a personal finance application that'll remind you when to pay your bills. Likewise, you can create a Direct Debit with your bank just by ticking a box. Sum up any amounts withdrawn from your account and check carefully anything that seems suspicious. Once you have everything on record, it becomes much easier to know how your finances are faring. 

Trust yourself and no one else 

When it comes to finances, it is best to keep track of all you have carefully. You may trust your finances with your financial adviser, however, it is still important to know where every cent is at, always. With a personal finance application, your money will never be far away from you. Whether you are paying bills, balancing your checkbook, tracking your paycheck, or creating a personal budget, you should not live without personal finance software. 

Whatever your financial lifestyle needs are, any financial software will help you budget properly and plan for your future.

Check out the FREE personal debt calculator Undebt.IT software (Link at the top of this page) as well as our Instagram and Facebook pages as to which other apps/tools we recommend. 

Please also get in touch for FREE Support if you need a bit of extra help.

Article Source: https://EzineArticles.com/expert/John_C_Watson/1346542

Six Finance Tips to Money, Wealth, Financial Security and Personal Finances

 Today everyone wants their money to be safe and secure. However, the financial world is growing more unstable and our needs are changing at a rapid pace. The necessity for individuals and families to save and manage their money has never been greater, harder and it is not getting any easier. Managing a budget, saving and investing your money wisely is the immense subject on everyone's mind. Saving money has become extremely hard today. You should save for retirement, save for your kids' college education, save in case you get laid off and save just to create a sense of comfort. 

Have you looked at your finances lately? The process of saving money, create wealth and achieving all of your financial goals start with the awareness what personal finance is. Personal finances are not about cashing your payroll check, paying your bills and meeting all of your monthly obligations. It is about having enough money saved in order to meet all of your financial goals in life. 

Money is a medium of exchange, but the lack of money adds to great emotional stress in our lives. Take control of your finances immediately by reviewing the following tips provided.

Today is an excellent time to start reviewing your finances and put together a good financial program with goals that fits your financial needs. After you review your finances, take immediate action and make some positive adjustments. Do not try to take care of it by yourself. Make sure all of your family members know about your plans and they can assist you in meeting all of your financial goals. An important issue is to measure your results and make all possible changes needed. When you and your family achieve all of the goals, reward yourselves. Rewards are always great motivators. Start Today.

Six Personal Finance 

Tips 1. It is not what you earn, it is what you save. Save at least 10% or more of your net earning from every paycheck. The important issue is to spend less than what you earn. Do not go beyond your means. 

2. To maintain a good savings account take control of your spending. A good spending plan, not a budget, will let you know where you are spending. Decide on what you want to spend your money on in advance and keep track of all of your monthly transactions. From there you will know what your spending habits are. 

3. Is your Bank meeting your needs? Possibly you might need to look at another bank that offers a much greater savings and or investment program. Today, Online Banks offer great investment programs.

 4. Apply and use credit cards that offer 0% for 12 months or more. Every monthly payment that you make will go directly to the balance and not to the high interest. When the 0% intro program is about to expire review what the interest rate will be. If the rate after that period is 10% or more, apply for another 0% credit card and transfer the remaining balance. Keep this process and you will never make an interest payment. 

5. Buy a home. Your best investment is your home but only if you get a low interest rate mortgage. If the current interest rate is 2% lower than your present rate, refinance and lower your monthly payment.

 6. The only possible way to build wealth is to determine a percentage of your income that you are willing to invest every year. 

Article Source: https://EzineArticles.com/expert/Alfredo_Valenzuela/795153